DECA Sports and Entertainment Marketing Practice Exam

Which analysis examines a business's strengths, weaknesses, opportunities, and threats?

1. PEST analysis

2. SWOT analysis

3. ROI analysis

4. Market trend analysis

The correct answer is: SWOT analysis

The analysis that examines a business's strengths, weaknesses, opportunities, and threats is known as a SWOT analysis. This strategic planning tool helps organizations assess internal factors (strengths and weaknesses) and external factors (opportunities and threats) that can impact their success. By conducting a SWOT analysis, businesses gain valuable insights into their current position within the market and can identify areas for improvement while also recognizing the potential opportunities they can pursue. This comprehensive overview aids in strategic decision-making, allowing the company to create plans that leverage its strengths, mitigate its weaknesses, capitalize on favorable opportunities, and prepare for potential threats. Other analysis types serve different purposes: a PEST analysis focuses on the political, economic, social, and technological factors affecting a business. ROI analysis evaluates the return on investment for specific projects or initiatives. Market trend analysis looks at the broader trends within a market to predict future movements, which is distinct from the internal and external focus of a SWOT analysis.